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|
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A BILL TO BE ENTITLED
|
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AN ACT
|
|
relating to the continuation and functions of the Texas Residential |
|
Construction Commission and the licensing and regulation of certain |
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builders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 12, Insurance Code, is amended by adding |
|
Chapter 3504 and a heading to read as follows: |
|
CHAPTER 3504. THIRD-PARTY WARRANTY COMPANIES FOR CERTAIN |
|
RESIDENTIAL CONSTRUCTION |
|
SECTION 2. Section 430.008, Property Code, is transferred |
|
to Chapter 3504, Insurance Code, redesignated as Section 3504.001, |
|
and amended to read as follows: |
|
Sec. 3504.001 [430.008]. REGULATION AND APPROVAL OF |
|
THIRD-PARTY WARRANTY COMPANY FOR CERTAIN RESIDENTIAL |
|
CONSTRUCTION. (a) The department [commission] may approve as a |
|
third-party warranty company for the purposes of Section 430.009, |
|
Property Code: |
|
(1) an entity that has operated warranty programs in |
|
this state for at least five years; |
|
(2) a company whose performance is insured by an |
|
insurance company authorized to engage in the business of insurance |
|
in this state; or |
|
(3) an insurance company that insures the warranty |
|
obligations of a builder under the statutory warranty and building |
|
and performance standards as provided by Chapter 430, Property |
|
Code. |
|
(b) A third-party warranty company must submit to the |
|
department [commission] an annual application and fee in the form |
|
and in the amount required by the commissioner [commission] by rule |
|
before the company may be approved under this section. |
|
SECTION 3. Section 214.906, Local Government Code, is |
|
amended to read as follows: |
|
Sec. 214.906. VERIFICATION OF BUILDER REGISTRATION. A |
|
municipality may not issue a building permit to a builder, as |
|
defined by Section 401.003, Property Code, for construction |
|
described by Section 401.003(a), Property Code, unless the |
|
municipality has verified that the builder is licensed by |
|
[registered with] the Texas Residential Construction Commission |
|
under Chapter 416, Property Code, or is exempt from holding a |
|
license [registration] under Section 401.005, Property Code. |
|
SECTION 4. Sections 27.001(4), (5), and (8), Property Code, |
|
are amended to read as follows: |
|
(4) "Construction defect" [has the meaning assigned by
|
|
Section 401.004 for an action to which Subtitle D, Title 16, applies
|
|
and for any other action] means a matter concerning the design, |
|
construction, or repair of a new residence, of an alteration of or |
|
repair or addition to an existing residence, or of an appurtenance |
|
to a residence, on which a person has a complaint against a |
|
contractor. The term may include any physical damage to the |
|
residence, any appurtenance, or the real property on which the |
|
residence and appurtenance are affixed proximately caused by a |
|
construction defect. |
|
(5) "Contractor": |
|
(A) means: |
|
(i) a person [builder, as defined by
|
|
Section 401.003,] contracting with an owner for the construction or |
|
repair of a new residence, for the repair or alteration of or an |
|
addition to an existing residence, or for the construction, sale, |
|
alteration, addition, or repair of an appurtenance to a new or |
|
existing residence; |
|
(ii) any person contracting with a |
|
purchaser for the sale of a new residence constructed by or on |
|
behalf of that person; or |
|
(iii) a person contracting with an owner or |
|
the developer of a condominium for the construction of a new |
|
residence, for an alteration of or an addition to an existing |
|
residence, for repair of a new or existing residence, or for the |
|
construction, sale, alteration, addition, or repair of an |
|
appurtenance to a new or existing residence; and |
|
(B) includes: |
|
(i) an owner, officer, director, |
|
shareholder, partner, or employee of the contractor; and |
|
(ii) a risk retention group registered |
|
under Chapter 2201 [Article 21.54], Insurance Code, that insures |
|
all or any part of a contractor's liability for the cost to repair a |
|
residential construction defect. |
|
(8) "Structural failure" [has the meaning assigned by
|
|
Section 401.002 for an action to which Subtitle D, Title 16, applies
|
|
and for any other action] means actual physical damage to the |
|
load-bearing portion of a residence caused by a failure of the |
|
load-bearing portion. |
|
SECTION 5. Section 27.002(b), Property Code, is amended to |
|
read as follows: |
|
(b) To [Except as provided by this subsection, to] the |
|
extent of conflict between this chapter and any other law, |
|
including the Deceptive Trade Practices-Consumer Protection Act |
|
(Subchapter E, Chapter 17, Business & Commerce Code) or a common law |
|
cause of action, this chapter prevails. [To the extent of conflict
|
|
between this chapter and Title 16, Title 16 prevails.] |
|
SECTION 6. Section 27.003(a), Property Code, is amended to |
|
read as follows: |
|
(a) In an action to recover damages or other relief arising |
|
from a construction defect: |
|
(1) a contractor is not liable for any percentage of |
|
damages caused by: |
|
(A) negligence of a person other than the |
|
contractor or an agent, employee, or subcontractor of the |
|
contractor; |
|
(B) failure of a person other than the contractor |
|
or an agent, employee, or subcontractor of the contractor to: |
|
(i) take reasonable action to mitigate the |
|
damages; or |
|
(ii) take reasonable action to maintain the |
|
residence; |
|
(C) normal wear, tear, or deterioration; |
|
(D) normal shrinkage due to drying or settlement |
|
of construction components within the tolerance of building |
|
standards; or |
|
(E) the contractor's reliance on written |
|
information relating to the residence, appurtenance, or real |
|
property on which the residence and appurtenance are affixed that |
|
was obtained from official government records, if the written |
|
information was false or inaccurate and the contractor did not know |
|
and could not reasonably have known of the falsity or inaccuracy of |
|
the information; and |
|
(2) if an assignee of the claimant or a person |
|
subrogated to the rights of a claimant fails to provide the |
|
contractor with the written notice and opportunity to inspect and |
|
offer to repair required by Section 27.004 [or fails to request
|
|
state-sponsored inspection and dispute resolution under Chapter
|
|
428, if applicable,] before performing repairs, the contractor is |
|
not liable for the cost of any repairs or any percentage of damages |
|
caused by repairs made to a construction defect at the request of an |
|
assignee of the claimant or a person subrogated to the rights of a |
|
claimant by a person other than the contractor or an agent, |
|
employee, or subcontractor of the contractor. |
|
SECTION 7. Sections 27.004(a), (b), (c), and (d), Property |
|
Code, are amended to read as follows: |
|
(a) Before [In a claim not subject to Subtitle D, Title 16,
|
|
before] the 60th day preceding the date a claimant seeking from a |
|
contractor damages or other relief arising from a construction |
|
defect initiates an action, the claimant shall give written notice |
|
by certified mail, return receipt requested, to the contractor, at |
|
the contractor's last known address, specifying in reasonable |
|
detail the construction defects that are the subject of the |
|
complaint. On the request of the contractor, the claimant shall |
|
provide to the contractor any evidence that depicts the nature and |
|
cause of the defect and the nature and extent of repairs necessary |
|
to remedy the defect, including expert reports, photographs, and |
|
videotapes, if that evidence would be discoverable under Rule 192, |
|
Texas Rules of Civil Procedure. During the 35-day period after the |
|
date the contractor receives the notice, and on the contractor's |
|
written request, the contractor shall be given a reasonable |
|
opportunity to inspect and have inspected the property that is the |
|
subject of the complaint to determine the nature and cause of the |
|
defect and the nature and extent of repairs necessary to remedy the |
|
defect. The contractor may take reasonable steps to document the |
|
defect. [In a claim subject to Subtitle D, Title 16, a contractor
|
|
is entitled to make an offer of repair in accordance with Subsection
|
|
(b). A claimant is not required to give written notice to a
|
|
contractor under this subsection in a claim subject to Subtitle D,
|
|
Title 16.] |
|
(b) Not [later than the 15th day after the date of a final,
|
|
unappealable determination of a dispute under Subtitle D, Title 16,
|
|
if applicable, or not] later than the 45th day after the date the |
|
contractor receives the notice [under this section, if Subtitle D,
|
|
Title 16, does not apply], the contractor may make a written offer |
|
of settlement to the claimant. The offer must be sent to the |
|
claimant at the claimant's last known address or to the claimant's |
|
attorney by certified mail, return receipt requested. The offer |
|
may include either an agreement by the contractor to repair or to |
|
have repaired by an independent contractor partially or totally at |
|
the contractor's expense or at a reduced rate to the claimant any |
|
construction defect described in the notice and shall describe in |
|
reasonable detail the kind of repairs which will be made. The |
|
repairs shall be made not later than the 45th day after the date the |
|
contractor receives written notice of acceptance of the settlement |
|
offer, unless completion is delayed by the claimant or by other |
|
events beyond the control of the contractor. If a contractor makes |
|
a written offer of settlement that the claimant considers to be |
|
unreasonable: |
|
(1) on or before the 25th day after the date the |
|
claimant receives the offer, the claimant shall advise the |
|
contractor in writing and in reasonable detail of the reasons why |
|
the claimant considers the offer unreasonable; and |
|
(2) not later than the 10th day after the date the |
|
contractor receives notice under Subdivision (1), the contractor |
|
may make a supplemental written offer of settlement to the claimant |
|
by sending the offer to the claimant or the claimant's attorney. |
|
(c) If [compliance with Subtitle D, Title 16, or] the giving |
|
of the notice under Subsections (a) and (b) within the period |
|
prescribed by those subsections is impracticable because of the |
|
necessity of initiating an action at an earlier date to prevent |
|
expiration of the statute of limitations or if the complaint is |
|
asserted as a counterclaim, [compliance with Subtitle D, Title 16,
|
|
or] the notice is not required. However, the action or counterclaim |
|
shall specify in reasonable detail each construction defect that is |
|
the subject of the complaint. The [If Subtitle D, Title 16, applies
|
|
to the complaint, simultaneously with the filing of an action by a
|
|
claimant, the claimant must submit a request under Section 428.001.
|
|
If Subtitle D, Title 16, does not apply, the] inspection provided |
|
for by Subsection (a) may be made not later than the 75th day after |
|
the date of service of the suit, request for arbitration, or |
|
counterclaim on the contractor, and the offer provided for by |
|
Subsection (b) may be made [not later than the 15th day after the
|
|
date the state-sponsored inspection and dispute resolution process
|
|
is completed, if Subtitle D, Title 16, applies, or] not later than |
|
the 60th day after the date of service [, if Subtitle D, Title 16,
|
|
does not apply]. If, while an action subject to this chapter is |
|
pending, the statute of limitations for the cause of action would |
|
have expired and it is determined that the provisions of Subsection |
|
(a) were not properly followed, the action shall be abated to allow |
|
compliance with Subsections (a) and (b). |
|
(d) The court or arbitration tribunal shall abate an action |
|
governed by this chapter if Subsection (c) does not apply and the |
|
court or tribunal, after a hearing, finds that the contractor is |
|
entitled to abatement because the claimant failed to [comply with
|
|
the requirements of Subtitle D, Title 16, if applicable, failed to] |
|
provide the notice or failed to give the contractor a reasonable |
|
opportunity to inspect the property as required by Subsection (a), |
|
or failed to follow the procedures specified by Subsection (b). An |
|
action is automatically abated without the order of the court or |
|
tribunal beginning on the 11th day after the date a motion to abate |
|
is filed if the motion: |
|
(1) is verified and alleges that the person against |
|
whom the action is pending did not receive the written notice |
|
required by Subsection (a), the person against whom the action is |
|
pending was not given a reasonable opportunity to inspect the |
|
property as required by Subsection (a), or the claimant failed to |
|
follow the procedures specified by Subsection (b) [or Subtitle D,
|
|
Title 16]; and |
|
(2) is not controverted by an affidavit filed by the |
|
claimant before the 11th day after the date on which the motion to |
|
abate is filed. |
|
SECTION 8. Section 27.0042(b), Property Code, is amended to |
|
read as follows: |
|
(b) A contractor may not elect to purchase the residence |
|
under Subsection (a) if [:
|
|
[(1)] the residence is more than five years old at the |
|
time an action is initiated [; or
|
|
[(2)
the contractor makes such an election later than
|
|
the 15th day after the date of a final, unappealable determination
|
|
of a dispute under Subtitle D, Title 16, if applicable]. |
|
SECTION 9. Section 41.007(a), Property Code, is amended to |
|
read as follows: |
|
(a) A contract for improvements to an existing residence |
|
described by Section 41.001(b)(3) must contain: |
|
(1) the contractor's license [certificate of
|
|
registration] number from the Texas Residential Construction |
|
Commission if the contractor is required to be licensed [register] |
|
as a builder by [with] the commission; |
|
(2) the address and telephone number at which the |
|
owner may file a complaint with the Texas Residential Construction |
|
Commission about the conduct of the contractor if the contractor is |
|
required to be licensed [register] as a builder by [with] the |
|
commission; and |
|
(3) the following warning conspicuously printed, |
|
stamped, or typed in a size equal to at least 10-point bold type or |
|
computer equivalent: |
|
"IMPORTANT NOTICE: You and your contractor are responsible |
|
for meeting the terms and conditions of this contract. If you sign |
|
this contract and you fail to meet the terms and conditions of this |
|
contract, you may lose your legal ownership rights in your |
|
home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW." |
|
SECTION 10. Chapter 401, Property Code, is amended by |
|
adding Section 401.0011 to read as follows: |
|
Sec. 401.0011. PURPOSE; TEXAS RESIDENTIAL CONSTRUCTION |
|
COMMISSION. (a) The Texas Residential Construction Commission |
|
oversees builders licensed by the commission to ensure that |
|
builders are responsible and accountable to the homeowners with |
|
whom they contract. |
|
(b) The commission's mission includes ensuring the |
|
protection of the public by educating builders and homeowners about |
|
all aspects of the residential construction industry affecting the |
|
building or remodeling of homes. |
|
SECTION 11. Section 401.002(6), Property Code, is amended |
|
to read as follows: |
|
(6) "Home" means the real property and improvements |
|
and appurtenances for a single-family or two-family dwelling of up |
|
to three stories [house or duplex]. |
|
SECTION 12. Sections 401.003(a), (b), and (d), Property |
|
Code, are amended to read as follows: |
|
(a) In this title, "builder" means any person who, for a |
|
fixed price, commission, fee, wage, or other compensation, sells, |
|
constructs, or supervises or manages the construction of, or |
|
contracts for the construction of or the supervision or management |
|
of the construction of: |
|
(1) a new home; |
|
(2) a material improvement to a home, including [other
|
|
than] an improvement solely to replace or repair a roof of an |
|
existing home, the construction of a swimming pool, or the repair of |
|
the foundation of the home; or |
|
(3) an improvement to the interior of an existing home |
|
when the cost of the work exceeds $10,000. |
|
(b) The term includes: |
|
(1) an owner, officer, director, shareholder, |
|
partner, affiliate, subsidiary, or employee of the builder; |
|
(2) a risk retention group governed by Chapter 2201 |
|
[Article 21.54], Insurance Code, that insures all or any part of a |
|
builder's liability for the cost to repair a residential |
|
construction defect; and |
|
(3) a third-party warranty company governed by Chapter |
|
3504, Insurance Code, and its administrator. |
|
(d) The term does not include a nonprofit business entity |
|
that is exempt from taxation under Section 501(c)(3), Internal |
|
Revenue Code, if: |
|
(1) the construction or supervision or management of |
|
the construction of the home, material improvement, or improvement |
|
sold by the nonprofit business entity is performed by a builder |
|
licensed [registered] under this title; |
|
(2) the builder contractually agrees to comply with |
|
the provisions of this title; |
|
(3) the builder is contractually liable to the |
|
homeowner for the warranties and building and performance standards |
|
of this title; and |
|
(4) the nonprofit business entity does not participate |
|
directly in the construction of the home, material improvement, or |
|
improvement. |
|
SECTION 13. Section 401.005(c), Property Code, is amended |
|
to read as follows: |
|
(c) An individual who builds a home or a material |
|
improvement to a home and sells the home immediately following |
|
completion of the building or remodeling and does not live in the |
|
home for at least one year following completion of the building or |
|
remodeling is responsible as a builder under the warranty |
|
obligation created by this title for work completed by the |
|
individual. Responsibility under this subsection requires [does
|
|
not automatically require] an individual to obtain a license |
|
[register] under Section 416.001. |
|
SECTION 14. Section 401.006, Property Code, is amended to |
|
read as follows: |
|
Sec. 401.006. SUNSET PROVISION. The Texas Residential |
|
Construction Commission is subject to Chapter 325, Government Code |
|
(Texas Sunset Act). Unless continued in existence as provided by |
|
that chapter, the commission is abolished and this title expires |
|
September 1, 2013 [2009]. |
|
SECTION 15. Sections 401.007(a), (b), and (c), Property |
|
Code, are amended to read as follows: |
|
(a) The [If the] commission [has reasonable cause to believe
|
|
that a person is violating a statute to which this chapter applies,
|
|
the commission, in addition to any other authorized action,] may |
|
issue an emergency order, including an emergency order to cease and |
|
desist, to any person regardless of whether the person is a builder |
|
licensed under this title [from the violation or an order to take
|
|
affirmative action, or both], to enforce a statute to which this |
|
chapter applies if the commission determines that an emergency |
|
exists requiring immediate action to protect the public health and |
|
safety or if the commission has reasonable cause to believe that a |
|
person is violating a statute to which this chapter applies. The |
|
commission may issue the emergency order without notice and hearing |
|
or with any notice and hearing the commission considers practicable |
|
under the circumstances [compliance]. A person may appeal the |
|
order directly to district court in accordance with Chapter 2001, |
|
Government Code. |
|
(b) The [Before issuing an order under this section, the] |
|
commission shall set the time and place and give notice for a |
|
hearing to affirm, modify, or set aside an emergency order that was |
|
issued without a hearing [of a hearing before a hearings officer]. |
|
The hearing is governed by Chapter 2001, Government Code. Based on |
|
the findings of fact, conclusions of law, and recommendations of |
|
the hearings officer, the commission by order may find whether a |
|
violation has occurred. |
|
(c) The commission, after providing notice and an |
|
opportunity to appear for a hearing, may impose against a person who |
|
violates an emergency [a cease and desist] order an administrative |
|
penalty in an amount not to exceed $1,000 for each day of violation. |
|
In addition to any other remedy provided by law, the attorney |
|
general or the commission may institute in district court a suit for |
|
injunctive relief and to collect an administrative penalty. A bond |
|
is not required of the commission with respect to injunctive relief |
|
granted under this section. In the action, the court may enter as |
|
proper an order awarding a preliminary or final injunction. |
|
SECTION 16. Sections 406.001(a) and (c), Property Code, are |
|
amended to read as follows: |
|
(a) The Texas Residential Construction Commission consists |
|
of 11 [nine] members appointed by the governor with the advice and |
|
consent of the senate as follows: |
|
(1) four members must be builders who each hold a |
|
license [certificate of registration] under Chapter 416; |
|
(2) four [three] members must be representatives of |
|
the general public; |
|
(3) one member must be a licensed professional |
|
engineer who practices in the area of residential construction; |
|
[and] |
|
(4) one member must be [either] a licensed architect |
|
who practices in the area of residential construction; and |
|
(5) one member must be [or] a building inspector who |
|
meets the requirements set forth in Chapter 427 and practices in the |
|
area of residential construction. |
|
(c) A person may not be a public member of the commission if |
|
the person or the person's spouse: |
|
(1) is a builder licensed [registered] with the |
|
commission, or is otherwise registered, certified, or licensed by a |
|
regulatory agency in the field of residential construction; |
|
(2) is employed by or participates in the management |
|
of a business entity or other organization regulated by or |
|
receiving money from the commission; |
|
(3) owns or controls, directly or indirectly, more |
|
than a 10 percent interest in a business entity or other |
|
organization regulated by or receiving money from the commission; |
|
or |
|
(4) uses or receives a substantial amount of tangible |
|
goods, services, or money from the commission other than |
|
compensation or reimbursement authorized by law for commission |
|
membership, attendance, or expenses. |
|
SECTION 17. Section 406.002(a), Property Code, is amended |
|
to read as follows: |
|
(a) Commission members serve staggered six-year terms, with |
|
three or four members' terms expiring February 1 of each |
|
odd-numbered year. The terms of three of the builder |
|
representatives must expire in different odd-numbered years. The |
|
terms [term] of three [one] of the representatives of the general |
|
public must expire in different [each] odd-numbered years [year]. |
|
SECTION 18. Section 406.004(b), Property Code, is amended |
|
to read as follows: |
|
(b) A person may not be a public member of the commission and |
|
may not be a commission employee employed in a "bona fide executive, |
|
administrative, or professional capacity," as that phrase is used |
|
for purposes of establishing an exemption to the overtime |
|
provisions of the federal Fair Labor Standards Act of 1938 (29 |
|
U.S.C. Section 201 et seq.) and its subsequent amendments, if: |
|
(1) the person is an officer, employee, manager, or |
|
paid consultant of a Texas trade association [or consumer
|
|
association] in the field of residential construction, including |
|
the business of supplying construction materials, or the field of |
|
real estate sales, including the issuance of title insurance; or |
|
(2) the person's spouse is an officer, manager, or paid |
|
consultant of a Texas trade association or consumer association in |
|
the field of residential construction, including the business of |
|
supplying construction materials, or the field of real estate |
|
sales, including the issuance of title insurance. |
|
SECTION 19. Section 408.001, Property Code, is amended to |
|
read as follows: |
|
Sec. 408.001. RULES. The commission shall adopt rules as |
|
necessary for the implementation of this title, including rules[:
|
|
[(1)
governing the state-sponsored inspection and
|
|
dispute resolution process, including building and performance
|
|
standards, administrative regulations, and the conduct of hearings
|
|
under Subtitle D;
|
|
[(2)] establishing limited statutory warranty and |
|
building and performance standards for residential construction[;
|
|
[(3) approving third-party warranty companies; and
|
|
[(4) approving third-party inspectors]. |
|
SECTION 20. Section 408.002(c), Property Code, is amended |
|
to read as follows: |
|
(c) The commission may charge a reasonable fee for: |
|
(1) [a homeowner to submit a request for
|
|
state-sponsored inspection under Subtitle D;
|
|
[(2)] providing public information requested under |
|
Chapter 552, Government Code, excluding information requested from |
|
the commission under Section 409.001; or |
|
(2) [(3)] producing, mailing, and distributing |
|
special printed materials and publications generated in bulk by the |
|
commission for use and distribution by builders. |
|
SECTION 21. Section 409.001, Property Code, is amended to |
|
read as follows: |
|
Sec. 409.001. PUBLIC INTEREST INFORMATION. (a) The |
|
commission shall prepare information of public interest describing |
|
the functions of the commission, the provisions of the limited |
|
statutory warranty and building and performance standards, [the
|
|
state-sponsored inspection and dispute resolution process,] and |
|
the procedures by which complaints [or requests] are filed with and |
|
resolved by the commission. |
|
(b) The commission shall make the information available to |
|
the public and appropriate state agencies and shall post the |
|
information on the commission's website. The commission shall make |
|
the information available on the commission's website in a format |
|
that allows builders to download the information and provide it to |
|
homeowners as required by Subsection (c). |
|
(c) Within 30 days of registering a home as [the receipt by
|
|
the commission of the registration] required by Section 426.003, a |
|
builder [the commission] shall provide [mail] a copy of the |
|
information of public interest described in Subsection (a) to the |
|
owner of the home as described in the registration. |
|
(d) The commission shall also prepare and make available on |
|
the commission's website information regarding the different |
|
categories and designations of builders in this state as well as |
|
different options that builders may offer homeowners related to the |
|
construction or remodeling of a home. |
|
SECTION 22. Section 409.0011(b), Property Code, is amended |
|
to read as follows: |
|
(b) The commission shall create and make accessible to the |
|
public an electronic list and a hard-copy list of builders who: |
|
(1) are licensed [registered] with the commission; and |
|
(2) provide in this state building services, including |
|
accessible floor plans, to persons with mobility-related special |
|
needs. |
|
SECTION 23. Section 409.004, Property Code, is amended to |
|
read as follows: |
|
Sec. 409.004. DIRECTORY OF BUILDERS. The commission shall |
|
make available to the public a list of each builder who holds a |
|
license [certificate of registration] issued under Chapter 416. |
|
SECTION 24. The heading to Subtitle C, Title 16, Property |
|
Code, is amended to read as follows: |
|
SUBTITLE C. BUILDER LICENSING [REGISTRATION] |
|
SECTION 25. The heading to Chapter 416, Property Code, is |
|
amended to read as follows: |
|
CHAPTER 416. LICENSE [CERTIFICATE OF REGISTRATION] |
|
SECTION 26. Section 416.001, Property Code, is amended to |
|
read as follows: |
|
Sec. 416.001. LICENSE [REGISTRATION] REQUIRED; RULES. (a) |
|
Notwithstanding any other law, a [A] person may not engage in |
|
business as a builder in this state or act as a builder unless the |
|
person holds a license [certificate of registration] under this |
|
chapter. |
|
(b) The commission shall adopt all rules necessary to |
|
implement the licensing program under this chapter, including rules |
|
relating to: |
|
(1) license eligibility including the education and |
|
experience required to obtain a license; |
|
(2) renewal requirements, examination requirements, |
|
and continuing education requirements for license holders; |
|
(3) security and insurance requirements; |
|
(4) disciplinary actions; and |
|
(5) any other issues determined necessary by the |
|
commission. |
|
SECTION 27. The heading to Section 416.002, Property Code, |
|
is amended to read as follows: |
|
Sec. 416.002. LICENSE APPLICATION [FOR CERTIFICATE]. |
|
SECTION 28. Sections 416.002(a) and (e), Property Code, are |
|
amended to read as follows: |
|
(a) An applicant for an original or renewal license |
|
[certificate of registration] must submit an application on a form |
|
prescribed by the commission. |
|
(e) Based on a commission investigation of an alleged |
|
violation of Sections 418.001(a)(12)-(18) [418.001(a)(14)-(20)], |
|
the commission may require an applicant for renewal of a license |
|
[certificate of registration] to disclose to the commission every |
|
person with an ownership interest in the applicant's business as a |
|
builder. This subsection does not apply to a publicly traded |
|
company. |
|
SECTION 29. Section 416.004(a), Property Code, is amended |
|
to read as follows: |
|
(a) The commission shall charge and collect: |
|
(1) a filing fee for an application for an original |
|
license [certificate of registration] that does not exceed $500; |
|
(2) a fee for renewal of a license [certificate of
|
|
registration] that does not exceed $300; and |
|
(3) a late fee that does not exceed the amount of the |
|
fee due if payment of a license [registration] application or |
|
renewal fee due under this title is late. |
|
SECTION 30. Chapter 416, Property Code, is amended by |
|
adding Section 416.0041 to read as follows: |
|
Sec. 416.0041. SECURITY REQUIREMENTS. (a) As a guarantee |
|
that a builder will meet the builder's obligations under this |
|
subtitle, each licensed builder shall maintain with the commission |
|
a bond or other security accepted by the commission. |
|
(b) A bond posted as security must: |
|
(1) be issued by an insurer authorized to engage in the |
|
business of insurance in this state; |
|
(2) be continuous; |
|
(3) be cancelable by the surety only after at least 90 |
|
days' notice to the commission; and |
|
(4) recognize that the obligation continues for the |
|
terms of the contracts written by the builder while the bond is in |
|
force. |
|
(c) Any security provided under this section in a form other |
|
than a bond must be convertible to cash by the commission for the |
|
benefit of persons who contract with the builder in this state, |
|
without resort to the courts, if the commission determines that the |
|
builder is in default of the builder's financial obligations to |
|
those contract holders. Any amount remaining after all contract |
|
holders' claims are paid must be returned to the builder not later |
|
than the 120th day after the date the last outstanding contract |
|
expires. |
|
SECTION 31. Section 416.005, Property Code, is amended to |
|
read as follows: |
|
Sec. 416.005. GENERAL ELIGIBILITY REQUIREMENTS. A person |
|
may not receive a license [certificate of registration] under this |
|
chapter unless: |
|
(1) the person, at the time of the application: |
|
(A) is at least 18 years of age; and |
|
(B) is a citizen of the United States or a |
|
lawfully admitted alien; and |
|
(2) the commission is satisfied with the person's |
|
honesty, trustworthiness, and integrity based on information |
|
supplied or discovered in connection with the person's application. |
|
SECTION 32. Section 416.006, Property Code, is amended to |
|
read as follows: |
|
Sec. 416.006. ADDITIONAL ELIGIBILITY REQUIREMENTS FOR |
|
BUSINESS ENTITIES. (a) To be eligible for an original or renewal |
|
license [certificate of registration] under this chapter: |
|
(1) a corporation must designate one of its officers |
|
as its agent for the purposes of this chapter; |
|
(2) a limited liability company must designate one of |
|
its managers as its agent for the purposes of this chapter; and |
|
(3) a partnership, limited partnership, or limited |
|
liability partnership must designate one of its managing partners |
|
as its agent for the purposes of this chapter. |
|
(b) A corporation, limited liability company, partnership, |
|
limited partnership, or limited liability partnership is not |
|
eligible to hold a license [be registered] under this chapter and |
|
may not act as a builder unless the entity's designated agent is |
|
individually licensed [registered] as a builder. |
|
SECTION 33. Section 416.007, Property Code, is amended to |
|
read as follows: |
|
Sec. 416.007. LICENSE ISSUANCE [OF CERTIFICATE]. (a) Not |
|
later than the 15th day after the date the commission receives an |
|
application from an applicant who meets the requirements of this |
|
chapter, the commission shall issue a license [certificate of
|
|
registration] to the applicant. |
|
(b) The license [certificate of registration] remains in |
|
effect for the period prescribed by the commission if the license |
|
[certificate] holder complies with this chapter and pays the |
|
appropriate renewal fees. |
|
(c) The commission shall issue one license [certificate of
|
|
registration] for each business entity licensed [registered] under |
|
this chapter. |
|
SECTION 34. The heading to Section 416.008, Property Code, |
|
is amended to read as follows: |
|
Sec. 416.008. DENIAL OF LICENSE [REGISTRATION]. |
|
SECTION 35. Section 416.008(a), Property Code, is amended |
|
to read as follows: |
|
(a) If the commission denies an application for an original |
|
license [certificate of registration] or a renewal application, the |
|
commission shall give written notice to the applicant not later |
|
than the 15th day after the date the commission receives the |
|
application. |
|
SECTION 36. Section 416.009, Property Code, is amended to |
|
read as follows: |
|
Sec. 416.009. LICENSE EXPIRATION [OF CERTIFICATE]. (a) |
|
The commission may issue or renew a license [certificate of
|
|
registration] for a period that does not exceed 24 months. |
|
(b) The commission by rule may adopt a system under which |
|
licenses [certificates of registration] expire on several dates |
|
during the year. The commission shall adjust the date for payment |
|
of renewal fees accordingly. |
|
(c) In a year in which the expiration date for a license |
|
[certificate of registration] is changed, the renewal fee payable |
|
shall be prorated on a monthly basis so that the license |
|
[certificate] holder pays only that portion of the fee that is |
|
allocable to the number of months during which the license |
|
[certificate of registration] is valid. On renewal of the license |
|
[certificate of registration] on the new expiration date, the total |
|
renewal fee is payable. |
|
SECTION 37. Sections 416.010(a), (b), (c), and (d), |
|
Property Code, are amended to read as follows: |
|
(a) A builder shall maintain a fixed office location in this |
|
state. The address of the builder's principal place of business |
|
must be designated on the license [certificate of registration]. |
|
(b) Not later than the 30th day after the date a builder |
|
moves from the address designated on the license [certificate of
|
|
registration], the builder shall submit an application, |
|
accompanied by the appropriate fee, for a license [certificate of
|
|
registration] that designates the new location of the builder's |
|
principal place of business. The commission shall issue a license |
|
[certificate of registration] that designates the new location if |
|
the new location complies with the requirements of this section. |
|
(c) If a builder operates under any name other than the name |
|
that is set forth on the builder's license [certificate of
|
|
registration], the builder shall, within 45 days of operating under |
|
this other name, disclose this other name to the commission. |
|
(d) This section does not require a builder to obtain a |
|
license [certificate of registration] for each sales office. |
|
SECTION 38. Sections 416.012(a), (b), (c), (d), and (e), |
|
Property Code, are amended to read as follows: |
|
(a) The commission shall recognize or administer continuing |
|
education programs for builders licensed [registered] by the |
|
commission. A licensed [registered] builder must participate in |
|
the programs to the extent required by this section to maintain the |
|
builder's license [registration]. |
|
(b) A licensed builder [who registers for the first time on
|
|
or after September 1, 2007,] must complete, during the first year |
|
the builder is licensed [registered] with the commission, five |
|
hours of continuing education, one hour of which must address |
|
ethics. |
|
(c) A licensed builder who has satisfied [is registered
|
|
before September 1, 2007, and all other builders who register for
|
|
the first time on or after September 1, 2007, and satisfy] the |
|
requirements of Subsection (b)[,] must thereafter complete three |
|
[five] hours of continuing education every two [five] years, one |
|
hour of which must address ethics. |
|
(d) The commission shall permit a licensed [registered] |
|
builder to receive continuing education credit for educational, |
|
technical, ethical, or professional management activities related |
|
to the practice of residential construction, including: |
|
(1) successfully completing or auditing a course |
|
sponsored by an institution of higher education; |
|
(2) successfully completing a course certified by a |
|
professional or trade organization; |
|
(3) attending a seminar, tutorial, short course, |
|
correspondence course, videotaped course, or televised course on |
|
the practice of residential construction; |
|
(4) participating in an in-house course sponsored by a |
|
corporation or other business entity; |
|
(5) teaching a course described by Subdivisions |
|
(1)-(4); |
|
(6) publishing an article, paper, or book on the |
|
practice of residential construction; |
|
(7) making or attending a presentation at a meeting of |
|
a residential or builder association or organization or writing a |
|
paper presented at the meeting; |
|
(8) participating in the activities of a residential |
|
or builder association, including serving on a committee of the |
|
organization; and |
|
(9) engaging in self-directed study on the practice of |
|
residential construction. |
|
(e) A licensed [registered] builder may not receive more |
|
than one [two] continuing education credit hour [hours] during each |
|
two-year [five-year] period for engaging in self-directed study. |
|
SECTION 39. Section 418.001, Property Code, is amended to |
|
read as follows: |
|
Sec. 418.001. GROUNDS FOR DISCIPLINARY ACTION. A person, |
|
including a builder or a person who is designated as a builder's |
|
agent under Section 416.006, or a person who owns or controls a |
|
majority ownership interest in the builder is subject to |
|
disciplinary action under this chapter for: |
|
(1) fraud or deceit in obtaining a license |
|
[registration or certification] under this subtitle; |
|
(2) misappropriation or misapplication of trust funds |
|
in the practice of residential construction, including a violation |
|
of Chapter 32, Penal Code, or Chapter 162[, if found by a final
|
|
nonappealable court judgment]; |
|
(3) naming false consideration in a contract to sell a |
|
new home or in a construction contract; |
|
(4) discriminating on the basis of race, color, |
|
religion, sex, national origin, or ancestry; |
|
(5) publishing a false or misleading advertisement; |
|
(6) failure to honor, within a reasonable time, a |
|
check issued to the commission, or any other instrument of payment, |
|
including a credit or debit card or electronic funds transfer, |
|
after the commission has sent by certified mail a request for |
|
payment to the person's last known business address, according to |
|
commission records; |
|
(7) failure to pay an administrative penalty assessed |
|
by the commission under Chapter 419 [or a fee due under Chapter
|
|
426]; |
|
(8) failure to pay a final nonappealable court |
|
judgment arising from a construction defect or other transaction |
|
between the person and a homeowner; |
|
(9) failure to register a home as required by Section |
|
426.003; |
|
(10) failure to remit the fee for registration of a |
|
home under Section 426.003; |
|
(11) [failure to reimburse a homeowner the amount
|
|
ordered by the commission as provided by Section 428.004(d);
|
|
[(12)] engaging in statutory or common-law fraud or |
|
misappropriation of funds, as determined by the commission after a |
|
hearing under Section 418.003; |
|
[(13)
a repeated failure to participate in the
|
|
state-sponsored inspection and dispute resolution process if
|
|
required by this title;] |
|
(12) [(14)] failure to obtain a license [register as a
|
|
builder] as required under Chapter 416; |
|
(13) [(15)] using or attempting to use a license |
|
[certificate of registration] that has expired or that has been |
|
revoked; |
|
(14) [(16)] falsely representing that the person |
|
holds a license [certificate of registration] issued under Chapter |
|
416; |
|
(15) [(17)] acting as a builder using a name other |
|
than the name or names disclosed to the commission; |
|
(16) [(18)] aiding, abetting, or conspiring with a |
|
person who does not hold a license [certificate of registration] to |
|
evade the provisions of this title or rules adopted under this |
|
title, if found by a final nonappealable court judgment; |
|
(17) [(19)] allowing the person's license |
|
[certificate of registration] to be used by another person; |
|
(18) [(20)] acting as an agent, partner, or associate |
|
of a person who does not hold a license [certificate of
|
|
registration] with the intent to evade the provisions of this title |
|
or rules adopted under this title; |
|
[(21)
a failure to reasonably perform on an accepted
|
|
offer to repair or a repeated failure to make an offer to repair
|
|
based on:
|
|
[(A)
the recommendation of a third-party
|
|
inspector under Section 428.004; or
|
|
[(B)
the final holding of an appeal under Chapter
|
|
429;] |
|
(19) [(22)] a repeated failure to respond to a |
|
commission request for information; |
|
(20) [(23)] a failure to obtain a building permit |
|
required by a political subdivision before constructing a new home |
|
or an improvement to an existing home; |
|
(21) [(24)] abandoning, without justification, any |
|
home improvement contract or new home construction project engaged |
|
in or undertaken by the person, if found to have done so by a final, |
|
nonappealable court judgment; |
|
(22) making threats, without justification, to a |
|
homeowner [(25)
a repeated failure to comply with the requirements
|
|
of Subtitle F]; or |
|
(23) [(26)] otherwise violating this title or a |
|
commission rule adopted under this title. |
|
SECTION 40. Section 418.002(a), Property Code, is amended |
|
to read as follows: |
|
(a) On a determination that a ground for disciplinary action |
|
under Section 418.001 exists, the commission may: |
|
(1) revoke or suspend a license [registration or
|
|
certification] in the event of repeated prior violations that have |
|
resulted in disciplinary action; |
|
(2) probate the suspension of a license [registration
|
|
or certification]; |
|
(3) formally or informally reprimand a licensed |
|
[registered or certified] person; or |
|
(4) impose an administrative penalty under Chapter |
|
419. |
|
SECTION 41. Section 418.004(c), Property Code, is amended |
|
to read as follows: |
|
(c) An appeal to a district court of a final decision of the |
|
commission under this section regarding a revocation or suspension |
|
of a license [registration or certification] is determined by |
|
substantial evidence. |
|
SECTION 42. Section 419.002(c), Property Code, is amended |
|
to read as follows: |
|
(c) A violation of Section 418.001(2) or (11) [(12)] is |
|
punishable by a penalty not to exceed $100,000. |
|
SECTION 43. Section 419.004, Property Code, is amended to |
|
read as follows: |
|
Sec. 419.004. ENFORCEMENT OF PENALTY. If a person does not |
|
pay an administrative penalty imposed under this chapter and |
|
enforcement of the penalty is not stayed, the commission may: |
|
(1) refer the matter to the attorney general for |
|
collection of the penalty; or |
|
(2) enforce any part of the order that specifies |
|
disciplinary action to be taken against the licensed [registered or
|
|
certified] person if the licensed [registered or certified] person |
|
fails to pay the administrative penalty within the time prescribed. |
|
SECTION 44. Sections 420.001 and 420.002, Property Code, |
|
are amended to read as follows: |
|
Sec. 420.001. REQUIRED WRITTEN DISCLOSURE. In a contract |
|
for the construction of a new home or an improvement to an existing |
|
home required to be registered under Section 426.003, the contract |
|
must contain a notice to the consumer in at least 10-point bold type |
|
or the computer equivalent that gives the telephone number of the |
|
commission and states: |
|
STATE LAW REQUIRES THAT A PERSON HOLD A LICENSE ISSUED BY |
|
[CERTIFICATE OF REGISTRATION FROM] THE TEXAS RESIDENTIAL |
|
CONSTRUCTION COMMISSION IF THE PERSON CONTRACTS TO CONSTRUCT A NEW |
|
HOME OR IF THE PERSON CONTRACTS TO CONSTRUCT A MATERIAL IMPROVEMENT |
|
TO AN EXISTING HOME OR CERTAIN IMPROVEMENTS TO THE INTERIOR OF AN |
|
EXISTING HOME AND THE TOTAL COST OF THE IMPROVEMENT IS $10,000 OR |
|
MORE (INCLUDING LABOR AND MATERIALS). |
|
YOU MAY CONTACT THE COMMISSION AT [insert commission's |
|
telephone number] TO FIND OUT WHETHER THE BUILDER HAS A VALID |
|
LICENSE [CERTIFICATE OF REGISTRATION]. THE COMMISSION HAS |
|
INFORMATION AVAILABLE ON THE HISTORY OF BUILDERS, INCLUDING |
|
SUSPENSIONS, REVOCATIONS, COMPLAINTS, AND RESOLUTION OF |
|
COMPLAINTS. |
|
[THIS CONTRACT IS SUBJECT TO CHAPTER 426, PROPERTY CODE.
THE
|
|
PROVISIONS OF THAT CHAPTER GOVERN THE PROCESS THAT MUST BE FOLLOWED
|
|
IN THE EVENT A DISPUTE ARISES OUT OF AN ALLEGED CONSTRUCTION
|
|
DEFECT.] IF YOU HAVE A COMPLAINT CONCERNING A CONSTRUCTION DEFECT |
|
YOU MAY CONTACT THE COMMISSION AT THE TOLL-FREE TELEPHONE NUMBER |
|
[TO LEARN HOW TO PROCEED UNDER THE STATE-SPONSORED INSPECTION AND
|
|
DISPUTE RESOLUTION PROCESS]. |
|
Sec. 420.002. REQUIRED CONTRACT PROVISIONS. In a contract |
|
for the construction of a new home or an improvement to an existing |
|
home required to be registered under Section 426.003, the contract |
|
is not enforceable against a homeowner unless the contract: |
|
(1) contains the builder's name and license |
|
[certificate of registration] number; and |
|
(2) contains the notice required by Section 420.001. |
|
SECTION 45. The heading to Subtitle D, Title 16, Property |
|
Code, is amended to read as follows: |
|
SUBTITLE D. [STATE-SPONSORED INSPECTION AND DISPUTE RESOLUTION
|
|
PROCESS;] STATUTORY WARRANTY AND BUILDING AND PERFORMANCE |
|
STANDARDS |
|
SECTION 46. Sections 430.001(d) and (e), Property Code, are |
|
amended to read as follows: |
|
(d) The International Residential Code for One- and |
|
Two-Family Dwellings that applies to nonelectrical aspects of |
|
residential construction for the purposes of the limited statutory |
|
warranties and building and performance standards adopted under |
|
this section is: |
|
(1) for residential construction located in a |
|
municipality or the extraterritorial jurisdiction of a |
|
municipality, the version of the International Residential Code |
|
applicable to nonelectrical aspects of residential construction in |
|
the municipality under Section 214.212, Local Government Code; |
|
(2) for residential construction located in an |
|
unincorporated area not in the extraterritorial jurisdiction of a |
|
municipality, the version of the International Residential Code |
|
applicable to nonelectrical aspects of residential construction in |
|
the municipality that is the county seat of the county in which the |
|
construction is located; and |
|
(3) for residential construction located in an |
|
unincorporated area in a county that does not contain an |
|
incorporated area, the version of the International Residential |
|
Code that existed on May 1, 2009 [2001]. |
|
(e) The National Electrical Code for One- and Two-Family |
|
Dwellings that applies to electrical aspects of residential |
|
construction for the purposes of this section is: |
|
(1) for residential construction located in a |
|
municipality or the extraterritorial jurisdiction of a |
|
municipality, the version of the National Electrical Code |
|
applicable to electrical aspects of residential construction in the |
|
municipality under Section 214.214, Local Government Code; |
|
(2) for residential construction located in an |
|
unincorporated area not in the extraterritorial jurisdiction of a |
|
municipality, the version of the National Electrical Code |
|
applicable to electrical aspects of residential construction in the |
|
municipality that is the county seat of the county in which the |
|
construction is located; and |
|
(3) for residential construction located in an |
|
unincorporated area in a county that does not contain an |
|
incorporated area, the version of the National Electrical Code that |
|
existed on May 1, 2009 [2001]. |
|
SECTION 47. Section 430.005(b), Property Code, is amended |
|
to read as follows: |
|
(b) This section does not exempt a builder in an area |
|
described by Subsection (a) from the builder licensing and home |
|
registration requirements imposed by this title, including the |
|
requirements of Sections 416.001 and 426.003. |
|
SECTION 48. Sections 430.009(a) and (c), Property Code, are |
|
amended to read as follows: |
|
(a) A builder may elect to provide a warranty through a |
|
third-party warranty company approved under Chapter 3504, |
|
Insurance Code [by the commission]. |
|
(c) A third-party warranty company approved under Chapter |
|
3504, Insurance Code, [by the commission] has all of the |
|
obligations and rights of a builder under this subtitle [regarding
|
|
performance of repairs to remedy construction defects or payment of
|
|
money instead of repair]. |
|
SECTION 49. Section 430.010, Property Code, is amended to |
|
read as follows: |
|
Sec. 430.010. MINIMUM STANDARDS FOR DETERMINATION OF |
|
DEFECT. The commission by rule shall adopt defect inspection |
|
procedures to be used by a [A] third-party warranty company for the |
|
purposes of [shall use defect inspection procedures substantially
|
|
similar to the procedures adopted by the commission under] this |
|
subtitle. A warranty company may adopt warranty standards in |
|
addition to the standards adopted by the commission. A third-party |
|
warranty company may not reduce the limited statutory warranty and |
|
building and performance standards, except that a third-party |
|
warranty company shall not be required to provide a warranty of |
|
habitability. |
|
SECTION 50. The following provisions of the Property Code |
|
are repealed: |
|
(1) Sections 27.001(3) and (9); |
|
(2) Section 27.004(l); |
|
(3) Sections 401.002(3), (4), (10), (11), (12), and |
|
(15); |
|
(4) Section 408.002(d); |
|
(5) Section 416.011; |
|
(6) Chapter 417; |
|
(7) Section 418.002(c); |
|
(8) Sections 426.001, 426.002, 426.004, 426.005, |
|
426.006, 426.007, and 426.008; |
|
(9) Chapters 427, 428, and 429; |
|
(10) Sections 430.005(c) and 430.011(b); |
|
(11) Chapter 431; and |
|
(12) Subtitles E and F, Title 16. |
|
SECTION 51. (a) Except as provided by this section, the |
|
changes in law made by this Act to Chapter 27, Property Code, and |
|
the repeal by this Act of Sections 426.005, 426.007, and 426.008, |
|
Property Code, apply only to an action commenced on or after the |
|
effective date of this Act. An action commenced before the |
|
effective date of this Act or with respect to which a request was |
|
filed under Section 428.001, Property Code, before the repeal of |
|
that section by this Act, is governed by the law in effect |
|
immediately before the effective date of this Act, and that law is |
|
continued in effect for that purpose. |
|
(b) The change in law made by this Act to Section |
|
27.003(a)(2), Property Code, applies only to a repair made on or |
|
after the effective date of this Act. A repair made before the |
|
effective date of this Act is subject to the law as it existed |
|
immediately before the effective date of this Act, and that law is |
|
continued in effect for that purpose. |
|
(c) Section 401.003, Property Code, as amended by this Act, |
|
applies only to activity described by that section, as amended by |
|
this Act, commenced on or after the effective date of this Act. |
|
Activity commenced before the effective date of this Act is |
|
governed by the law in effect immediately before the effective date |
|
of this Act, and that law is continued in effect for that purpose. |
|
(d) Section 401.005(c), Property Code, as amended by this |
|
Act, applies only to a home or material improvement to a home, the |
|
building or remodeling of which commences on or after the effective |
|
date of this Act. A home or material improvement to a home |
|
described by Section 401.005(c), Property Code, as amended by this |
|
Act, the building or remodeling of which is commenced before the |
|
effective date of this Act is subject to the warranty obligation |
|
applicable to the home or material improvement to the home |
|
immediately before the effective date of this Act. |
|
(e) Section 401.007, Property Code, as amended by this Act, |
|
applies only to an order regarding an emergency or a violation of a |
|
statute to which Chapter 401, Property Code, applies that occurs on |
|
or after the effective date of this Act. An order regarding an |
|
emergency or a violation of a statute that occurred before the |
|
effective date of this Act is governed by the law in effect at the |
|
time the emergency or violation occurred, and that law is continued |
|
in effect for that purpose. |
|
(f) Promptly after this Act takes effect, the governor shall |
|
appoint the two additional members to the Texas Residential |
|
Construction Commission as required by Section 406.001, Property |
|
Code, as amended by this Act. In appointing those members, the |
|
governor shall appoint one person to a term expiring February 1, |
|
2011, and one to a term expiring February 1, 2013. |
|
(g) Section 406.004(b), Property Code, as amended by this |
|
Act, applies only to a member of the Texas Residential Construction |
|
Commission appointed or reappointed on or after the effective date |
|
of this Act. A commission member appointed or reappointed before |
|
the effective date of this Act is subject to the law as it existed |
|
immediately before the effective date of this Act, and that law is |
|
continued in effect for that purpose. |
|
(h) The Texas Residential Construction Commission shall |
|
adopt rules as required by Chapter 416, Property Code, as amended by |
|
this Act, not later than December 1, 2009. A person is not required |
|
to hold a license under Chapter 416, Property Code, as amended by |
|
this Act, until January 1, 2010. A person registered as a builder |
|
under Chapter 416, Property Code, as it existed immediately before |
|
the effective date of this Act, is not required to comply with an |
|
examination requirement to obtain a license under Chapter 416, as |
|
amended by this Act, until September 1, 2014. |
|
(i) Section 418.001, Property Code, as amended by this Act, |
|
applies only to a ground for disciplinary action that occurs on or |
|
after the effective date of this Act. A ground for disciplinary |
|
action that occurs before the effective date of this Act is governed |
|
by the law in effect at the time the ground for disciplinary action |
|
occurred, and that law is continued in effect for that purpose. |
|
(j) The change in law made by this Act to Section 420.001, |
|
Property Code, applies only to a contract entered into on or after |
|
January 1, 2010. A contract entered into before that date is |
|
governed by the law in effect on the date the contract was entered |
|
into, and the former law is continued in effect for that purpose. |
|
(k) The repeal by this Act of Section 428.005, Property |
|
Code, does not apply to the receipt by a builder of a notice |
|
described by that section before the effective date of this Act. |
|
The receipt by a builder of a notice described by that section |
|
before the effective date of this Act is governed by the law in |
|
effect immediately before that date, and that law is continued in |
|
effect for that purpose. |
|
(l) The repeal by this Act of Section 436.003, Property |
|
Code, applies only to an arbitration initiated on or after the |
|
effective date of this Act. An arbitration initiated before the |
|
effective date of this Act is governed by the law applicable to the |
|
arbitration immediately before the effective date of this Act, and |
|
that law is continued in effect for that purpose. |
|
(m) The repeal by this Act of Chapter 437, Property Code, |
|
applies only to an arbitration award filed on or after the effective |
|
date of this Act. An award filed before the effective date of this |
|
Act is governed by the law in effect immediately before that date, |
|
and that law is continued in effect for that purpose. |
|
(n) The repeal by this Act of Chapter 438, Property Code, |
|
applies only to an arbitration award issued on or after the |
|
effective date of this Act. An award issued before the effective |
|
date of this Act is governed by the law in effect immediately before |
|
that date, and that law is continued in effect for that purpose. |
|
SECTION 52. Except as otherwise provided by this Act, this |
|
Act takes effect September 1, 2009. |